Boosting competition alone will not satisfactorily address banking issues, the Finance Sector Union today told a Senate inquiry into competition within the Australian banking sector.

"Banking is an essential service to our nation and this Inquiry must look at the social and economic contribution we want banks to make to Australian society. We need a cohesive, long-term industry plan so we have a sustainable and responsible banking system in the future," said FSU National Secretary Leon Carter.

"Banking is integrated into our ability as citizens to function in modern society, and it is impossible for Australians to opt out of the banking system. It is up to Government to ensure the system operates fairly and equitably for all Australians,"

"There is a real thirst for change amongst consumers and bank workers, and while key aspects of the type of changes sought have been picked up by Government - exit fees, switching, responsible lending initiatives such as credit card reform and better product information -the behaviour and culture of our big banks need to be reined in by a regulatory regime," said Mr Carter.

Independent research commissioned by the Finance Sector Union in April 2010 showed high levels of concern from the community and employees of banks about how banking is conducted in Australia, with both groups believing that regulation was the key to achieving better banking.

"Customers and employees of banks want better banking. They are ready for change, and have an expectation that Government will deliver real change," said Mr Carter.